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Jinsi ya kukokotoa Simple Interest

Simple Interest ni nini?

Simple interest is calculated only on the original principal, not on accumulated interest. It grows linearly with time, unlike compound interest which grows exponentially.

Mwongozo wa Hatua kwa Hatua

  1. 1Interest I = P × r × t
  2. 2Total amount A = P + I = P(1 + rt)
  3. 3r must be in decimal form (5% = 0.05)
  4. 4t must be in years

Mifano Iliyotatuliwa

Ingizo
$1,000 at 5% for 2 years
Matokeo
$100 interest
A = $1,100
Ingizo
$500 at 3% for 18 months
Matokeo
$22.50 interest
t=1.5 years

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